India's spice export market is on track to reach $10 billion by 2030, with plans to expand into Africa, South America, and the East European bloc.
According to Ramkumar Menon, chairman of the World Spice Organisation (WSO), the spice sector is now concentrating on growth areas like health and wellness, nutraceuticals, and pharmaceuticals, where spices are vital for their health advantages. For instance, there was a notable rise in ginger and turmeric exports during the COVID-19 pandemic.
Exploring New Markets and Sectors
The seasoning sector presents significant potential for Indian spice exports. Despite the global market for seasonings being 4.9 million metric tons, valued at $14.2 billion, India's share is only 0.7% by volume and 0.6% by value. In contrast, China holds a 12.2% share in quantity and 14.6% in value.
Menon emphasizes that India, with its diverse spice portfolio and 15 agro-climatic zones, should capture a larger market share. However, this requires flexible government policies to facilitate business operations, especially for importing specific ingredients needed for the seasoning and nutraceutical sectors.
Quality and Market Standards:
Addressing concerns about the quality of Indian spices, Menon noted that rejections are minimal, below 1% of total export volume. He highlighted that agricultural commodities are subject to climate variations, which can affect quality. Despite stringent standards in both domestic and international markets, the industry is confident in meeting these requirements.
The All India Spices Exporters Forum and the World Spice Organisation host annual conferences like the International Spice Conference (ISC) and the National Spice Conference (NSC) to showcase Indian spices globally. The next ISC will be in Bengaluru in February 2025, and the NSC will be held on November 15-16 in Ahmedabad.
For the first half of the financial year (Apr-Sep 2024), spice exports totaled Rs. 17,488 crores (USD 2.09 billion), an 8.86% increase in rupee terms and 7.31% in USD compared to the same period last year. The export target for the financial year is USD 4.7 billion, with an expected 6% increase in FY 2025.
India's most exported spices include chili, cumin, mint, and turmeric in various forms. Major consuming countries are China, Bangladesh, the USA, Sri Lanka, the Middle East, and the UK. India produces approximately 12.48 million tons of spices every year.
REFERENCE- EconomicTimes,TheHindu
